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Metal Management garners EMR'S interest.

European Metal Recycling Ltd., Warrington, U.K., has sent a letter to Metal Management Inc.'s board proposing a legal and financial due diligence study of Metal Management to pursue a business combination.

In the Aug. 8 letter, European Metal Recycling (EMR) said formulation of a specific plan or proposal for Chicago-based Metal Management is not guaranteed.

The letter appeared in an SEC filing. In the letter, EMR noted, "As we discussed today, we believe that a business combination of EMR and Metal Management would be in the best interests of Metal Management, its stockholders and EMR. As such, we propose that we and our advisors immediately begin a financial and legal due diligence review of the Company."

The firm said its plans for Metal Management may include privately negotiating transactions of Metal Management's securities, open-market purchases, proposing a business combination including a merger, a tender offer or waging a proxy battle.

The filing added that EMR did not wish to make a hostile takeover attempt.

The letter concluded by noting that Metal Management experienced a significant run-up in its stock price after EMR purchased significant shares.

As of early June, EMR has owned 1.5 million Metal Management shares for a 14.8 percent stake in Metal Management, whose operations are almost entirely in the U.S.

EMR bills itself on its Web site as "one of the world's largest recycling companies--and the largest in the U.K." It currently handles more than 8.5 million tons of scrap metal each year at 65 facilities, predominantly in the U.K., with a half dozen in Belgium and Germany.
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Title Annotation:due diligence proposal from European Metal Recycling Ltd.; Scrap Industry News
Publication:Recycling Today
Article Type:Brief Article
Geographic Code:1USA
Date:Sep 1, 2003
Words:269
Previous Article:Great expectations.
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